The Globe and Mail reports in its Saturday, May 25, edition that believing Aphria's ($9.88) current valuation is "not reflective of reality" and expecting a "significant rerating," Jefferies analyst Owen Bennett commenced coverage with a "buy" rating and $15 share target. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $16.61.
Mr. Bennett thinks Aphria's valuation is now the cheapest in the weed sector, despite a strong global outlook, and thinks governance-related issues, which have weighed, are fading. The Globe's Larry MacDonald reported that short sellers had cannabis stocks in their sights because valuations had outrun earnings and revenues. Aphria shares were then going for $9.26.
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